Transcript Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the.

Forward-looking statements in this report relating to WesBanco’s plans, strategies,
objectives, expectations, intentions and adequacy of resources, are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The information contained in this report should be read in conjunction with
WesBanco’s 2014 Annual Report on Form 10-K and documents subsequently filed by
WesBanco with the Securities and Exchange Commission (“SEC”), including
WesBanco’s Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015,
which are available at the SEC’s website, www.sec.gov or at WesBanco’s website,
www.wesbanco.com.
Investors are cautioned that forward-looking statements, which are not historical fact,
involve risks and uncertainties, including those detailed in WesBanco’s most recent
Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item
1A. Such statements are subject to important factors that could cause actual results
to differ materially from those contemplated by such statements. WesBanco does not
assume any duty to update forward-looking statements.
Mid-Atlantic Bank Headquartered in Wheeling, West Virginia
Assets: $8.4 billion
Founded in 1870
34 banks/24 companies acquired in 26 years
Geographic Loan Distribution: West Virginia (40%), Ohio
(34%) and Western Pennsylvania (26%)
Geographic Deposit Distribution: West Virginia (42%), Ohio
(31%) and Western Pennsylvania (27%)
142 Financial Centers and 130 ATMs
Wealth management, securities brokerage, insurance and
proprietary family of mutual funds
3
*Traded as WSBC on NASDAQ Global Stock Market.
Executive
Position
Years in
Banking
Years w/
WSBC
James Gardill
Chairman of the Board
43*
43
Todd Clossin
President & CEO
31
2
Robert Young
EVP & CFO
29
14
Ivan Burdine
EVP & Chief Credit Officer
35
2
Jonathan Dargusch
EVP – Trust & Investments
34
5
Jay Zatta
EVP – Chief Lending Officer
29
7
Lynn Asensio
EVP – Retail Administration
37
10
Michael Perkins
EVP – Chief Risk and Admin.
20
20
*As legal counsel to WesBanco.
 Completed acquisition of ESB Financial Corporation
(February 2015).
 Increased dividends to shareholders 8 times in last
4 ½ years representing a 64.3% increase.
 Earned five consecutive “Outstanding” CRA ratings.
 Outperformed the S&P 500 over the past 38 years.
 Achieved “5 Star” Bauer Financial Rating.
 Named to 2014 KBW Bank Honor Roll.
5
 Three State Diversified (emerging) Regional Financial
Services Company
 Wesmark Funds (proprietary mutual funds, approaching $1
billion in assets.
 Trust Business (one of the largest in the Midwest amongst
peer banks, 100 years old with $3.8 billion in assets under
management and supervision.
 Shale Deposit Growth (93% of deposit footprint in shale
related areas).
 Geographic Diversity (strong legacy market share, three
major metro markets).
 Geographic Diversification Strategy – past 10 years (top 10
market share Pittsburgh and Columbus MSA’s with 66% of
loan balances now located in Ohio and Pennsylvania).
6
 Balanced (diversified) Revenue Growth Engines
 Earnings impacted by margin but peaks and valley’s
smoothed out by other businesses.
 Rebalancing loan mix strategy (double digit % growth in C&I
and HELOC).
 Rebalancing deposit mix (moved from 14% DDA to 20%
DDA over the past 7 years).
 Debit card revenue now exceeds overdraft/NSF revenue.
 Balanced (diversified) Revenue Growth Engines.
 Efficiency Ratio 56.1%; Driven by Positive Operating
Leverage.
 Cross-Sell Ratio Improving From 3.2 to 4.1 Over the Past
18 months with all Markets over 4.0.
7
8
WesBanco Inc.
120 Branches
ESB Financial
Corp.
22 Branches
9
 $3.8B of trust assets under management/custody; over $200 million in
private banking assets.
 Over 5,000 trust and 1,100 private banking relationships.
 Combined Trust, Securities




Brokerage and Private Banking
under one executive team.
10 locations in WV, OH & PA.
Improving performance as asset
values have grown.
Shale related opportunities.
Product capabilities:








10
Trust and Investment management
WesMark Funds
Estate planning
Financial planning
Securities sales
Retirement planning
Insurance – personal and commercial lines,
title and health insurance.
Private client services.
Assets Under Management ($B)
Management Fees ($MM)
Net Securities Brokerage Revenue ($MM)
$17.2
$3.0
$18.0
$19.6
$21.1
$3.7
$3.8
$6.2
$6.9
2013
2014
$23.2*
$3.8
$3.2
$4.4
$4.6
2011
2012
$7.9*
6/30/2015
*Annualized
11
12
Loan Category Growth
% Loan Growth since 2011
120%
100%
80%
60%
40%
20%
0%
-20%
2011
2012
Comm. RE
13
2013
C&I
Res RE
2014
HE Lines
Consumer
YTD 2015
$ 2450
1950
1450
950
450
(50)
Loan Growth
14
Deposit Growth
2/10/15 acquisition of ESB Financial.
11/30/12 acquisition of Fidelity Bancorp.
Capital Growth
Gain Mort. Loan Sales
Insurance
Trust
($MM)
$60.2
$62.6
$68.7
 Non-interest income contributed
Other Inc.
24% of net revenue YTD 2015.
Securities brokerage
Service charges & Fees  Non-bank offerings (trust,
insurance, securities) contributed
$72.7
$68.6
$17.0 million to YTD 2015
revenue.
 Securities brokerage revenue has
increased 1.8% YTD 2015.
 Trust fees have increased 6.2%
YTD 2015.
 1Q’15 included a $376 thousand
gain in BOLI income due to
mortality payouts.
2011
2012
2013
2014
6/30/2015
Annualized
15
* Operating non-interest income excludes G/L on securities and G/L on
sale of OREO property. See non-GAAP measures for additional
information.
 Preparing for $10 billion Dodd-Frank threshold.
 A schedule of key regulatory requirements that are applicable at the $10 billion mark has
been developed and management is tracking progress and providing updates to the Board
of Directors.
 Staffing analysis, talent reviews and technology assessments are being completed to
further organization readiness.
 Internal project management office (PMO).
 Ensures projects effectiveness and overall timeliness.
 Adherence to defined scope, resources, budget, and mitigation practices.
 Project advisory and governance groups for management/board reporting.
 Stress testing
 Conducted similar to the Comprehensive Capital Analysis and Review (CCAR) consistent
with our size/complexity.
 Includes liquidity and loan portfolio stress testing.
 Reviewed annually with senior management, board and regulators.
 Enhancing an already strong compliance management system
16
 Ongoing assessment of consumer compliance and BSA/AML related risk and regulator
expectations to strengthen overall compliance practices.
 Over next two years, expecting to add 6-10 FTE’s to compliance overall.
 Scalable technology infrastructure permitting organic and acquisition
related growth without significant additional investment.
 Use technology to reduce travel cost and enhance communication
through video conferencing capabilities across expanding footprint.
 Reduced communication cost by 43% from 2013 through implementation
of company-wide modernization of the communication infrastructure,
upgrade of corporate phone systems and complete installation of thinclient technology with elimination of all desktop/laptop computers.
 Participate/contribute to global information security forums/councils.
Collaboration with peers to protect common interest of secure financial
industry along with protection of customers’ information.
17
 History of successful acquisitions which have provided
improved earnings.
 Focus on targeted M & A in existing markets and new
higher-growth metro areas within a 5-hour drive.
 Ability to execute merger transactions quickly (Fidelity /
ESB mergers completed 3-4 months).
 Adequate capital and liquidity to close deals.
 Experienced senior management, IT platform and back
office know-how assists early deal
completion/efficiencies.
 Community bank look and feel.
 Long-term focus on shareholder returns.
 Total return exceeds the S&P 500 over the last 38 years.
18
19
For the Six
months
Ended
June
2014
For the Six
months
Ended
June
2015
% Change
$35,296
$42,563
20.6%
Diluted Core Operating Earnings Per
Share*
$ 1.20
$ 1.17
(2.5%)
Provision for Credit Losses
$3,048
$3,970
30.2%
1.23%
1.19%
(3.3%)
16.17%
14.48%
(10.5%)
59.08%
56.18%
(4.9%)
($ in thousands, except diluted earnings per share)00’s except
per share data)
Core Operating Net Income*
Core Operating Return on Average
Tangible Assets*
Core Operating Return on Average
Tangible Equity*
Core Operating Efficiency Ratio,
excludes restructuring and merger
related expenses*
20 *See non-GAAP measures for additional information relating to the calculation of this item.
YTD
December
2010
YTD
December
2011
YTD
December
2012
YTD
December
2013
YTD
December
2014
$35,611
$43,809
$49,544
$63,925
$69,974
Diluted Earnings Per Share
$ 1.34
$ 1.65
$ 1.84
$ 2.18
$ 2.39
Provision for Credit Losses
$44,578
$35,311
$19,874
$ 9,086
$ 6,405
Return on Average Assets
0.66%
0.81%
0.88%
1.05%
1.12%
Return on Average Tangible
Equity*
11.56%
13.18%
13.57%
15.79%
15.39%
Net Interest Margin (FTE)
3.60%
3.66%
3.53%
3.58%
3.61%
Efficiency Ratio, excludes
restructuring and merger
related expenses*
60.81%
59.50%
60.98%
60.99%
59.59%
($ in thousands, except diluted earnings
per share)00’s except
per share
data)
Net Income
21 *See non-GAAP measures for additional information relating to the calculation of this item.
NIM
4.20%
3.56%
4.13%
Yield on Earning Assets
4.09%
0.77%
0.73%
22
3Q'13
4Q'13
1Q'14
3.98%
3.58%
0.63%
0.56%
2Q'13
4.06%
3.64%
3.63%
3.58%
3.52%
4.08%
Cost of Funds
0.52%
2Q'14
3.96%
3.60%
0.51%
3Q'14
3.93%
3.59%
0.47%
4Q'14
0.43%
1Q'15
3.76%
3.44%
0.41%
2Q'15
Total Risk Based Capital
16.00%
14.56%
14.62%
Tangible Equity to Tangible Assets *
14.92%
14.81%
14.30%
14.00%
12.00%
10.00%
8.00%
7.91%
7.74%
7.88%
7.78%
7.68%
6.00%
4.00%
2.00%
0.00%
2Q'14
3Q'14
4Q'14
*See non-GAAP financial measures for additional
information relating to the calculation of this ratio.
23
1Q'15
2Q'15
Securities = $2.4 B
~29.2% of total assets
US Govt.
Agencies
3.3%
Agency
MortgageBacked &
CMOs, 55.4%
Municipals,
33.2%
Equities &
Others, 8.1%
24
 Average tax-equivalent
portfolio yield of 2.79%.
 WAL approx. 4.6 years;
modified duration 4.1%.
 Over 55% unpledged.
 Net unrealized AFS
securities losses of $1.3
million at 6/30/15; total
net unrealized portfolio
gain with HTM of $14.5
million.
Total Loans = $4.9 B
LHFS, 0.2%
Comm. &
Ind., 14.8%
Consumer,
7.8%
HELOC,
7.7%
Res. Real
Estate, 25.1%
25
Comm. Real Estate =
$2.2 B
Const & Dev.
14.1%
Comm.
Real
Estate,
44.4%
Investorowned
64.8%
Owneroccupied
21.1%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15
NPA's as a % of total Loans
26
Criticized & Classified Loans as a % of total Loans
1.8%
$3,500
1.6%
$3,000
1.4%
$2,500
1.2%
$2,000
1.0%
0.8%
$1,500
0.6%
$1,000
0.4%
$500
0.2%
0.0%
$-
2Q'13
3Q'13
4Q'13
Provision for credit losses
27
1Q'14
2Q'14
ALL as a % of total loans
3Q'14
4Q'14
1Q'15
Non performing loans as a % of total loans
2Q'15
($000)
Immediate Change in
Interest Rates
% Change in Net Interest Income from
Base Over One Year
June 30, 2015
December 31, 2014
Up 1% Rate Shock
+1.2%
+1.9%
Up 2% Rate Shock
+1.0%
+2.1%
Up 3% Rate Shock
-0.2%
+0.9%
Up 2% Rate Ramp
+2.1%
+1.9%
Down 1% Rate Shock
-1.6%
-1.8%
EVE Up 2% Rate Shock *
1.1%
6.0%
EVE Down 1% Rate Shock *
-6.8%
-11.0%
* EVE – economic value of equity, which is defined as the market value of
equity in various increasing and decreasing rate scenarios.
28
29
$0.25
December 2014 Dividend Payout Ratio = 36.82% as of 12/31/14
$0.20
$0.15
$0.10
$0.05
$0.00
1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15
30
WesBanco dividend yield is 2.70% compared to SNL Banks
$5B-10B peer group of 2.30%.
 Strong regulatory capital.
 Proven acquisition-oriented growth
strategy.
 Liquidity to fund additional lending
capacity.
 Asset quality compares favorably with
regional and national peers.
 Diversity of earnings stream.
 Potential upside market appreciation
due to lower than peer P/E ratio.
31
32
6 months ended 6 months ended
($ in thousands except earnings per share amounts)
Net income
Plus: Restructuring and merger-related
expense (net of tax)
Core operating net income
Average common shares - diluted
Core operating earnings per common share - diluted
33
6/30/14
6/30/15
$ 35,296
$ 35,512
0
7,051
$ 35,296
$ 42,563
29,293,424
36,504,671
$ 1.20
$ 1.17
($ in thousands)
6 months ended 6 months ended
6/30/14
6/30/15
$ 80,398
$ 100,047
(0)
(10,848)
(977)
(1,510)
Non-interest expense excluding restructuring and
merger related expense
$ 79,421
$ 87,689
Net interest income (on a fully taxable equivalent basis)
$ 99,304
$ 119,841
35,290
36,254
(175)
(22)
$134,419
$156,073
59.08%
56.18%
Non-interest expense
Less: restructuring and merger related expense
Less: amortization of intangibles
Non-interest income
Less: Securities gains/losses
Total income
Non-interest expense / total income (efficiency ratio)
34
($ in thousands)
Non-interest expense
Less: restructuring and merger
related expense
Non-interest expense excluding
restructuring and merger related
expense
2010
$ 141,152
2011
$ 140,295
(175)
2012
2013
2014
$ 150,120
$ 160,998
$ 161,633
(3,888)
(1,310)
(1,309)
140,977
140,295
146,232
159,688
160,324
172,235
175,885
175,027
192,556
200,545
59,599
59,888
64,775
69,285
68,504
Total income
231,834
235,773
239,802
261,841
269,049
Non-interest expense / total
income (efficiency ratio)
60.81%
59.50%
60.98%
60.99%
59.59%
Net interest income (on a fully
taxable equivalent basis)
Non-interest income
35
($ in thousands)
2010
2011
2012
2013
2014
Total shareholder’s equity
$ 606,863
$ 633,790
$ 714,184
$ 746,595
$ 788,190
Less: goodwill & other intangible
assets, net of def. tax liabilities
(281,534)
(279,967)
(320,399)
(318,161)
(316,914)
$ 325,329
$ 353,823
$ 393,785
$ 428,434
$ 471,276
$5,361,458
$5,536,030
$6,078,717
$6,144,773
$6,296,565
(281,534)
(279,967)
(320,399)
(318,161)
(316,914)
$5,079,924
$5,256,063
$5,758,318
$5,826,612
$5,979,651
6.40%
6.73%
6.84%
7.35%
7.88%
Tangible equity
Total assets
Less: goodwill & other intangible
assets, net of def. tax liabilities
Tangible assets
Tangible equity to tangible assets
36
($ in thousands)
2Q’14
Total shareholder’s equity
$ 778,625
$ 788,784
$ 788,190
$ 1,091,384
$ 1,094,653
Less: goodwill & other intangible
assets, net of def. tax liabilities
(317,527)
(317,217)
(316,914)
(488,911)
(488,949)
$ 461,098
$ 471,567
$ 471,276
$ 602,473
$ 605,704
$6,277,020
$6,278,494
$6,296,565
$8,233,279
$8,375,419
(317,527)
(317,217)
(316,914)
(488,911)
(488,949)
$5,959,493
$5,961,277
$5,979,651
$7,744,368
$7,886,470
7.74%
7.91%
7.88%
7.78%
7.68%
Tangible equity
Total assets
Less: goodwill & other intangible
assets, net of def. tax liabilities
Tangible assets
Tangible equity to tangible
assets
37
3Q’14
4Q’14
1Q’15
2Q’15
($ in thousands)
2011
Non-interest income
Less: Net securities gains
Less: net gains/losses on other
real estate owned and other
assets
Net operating non-interest
income
2012
2013
2014
2015*
$ 59,888
$ 64,775
$ 69,285
$ 68,504
$ 73,109
963
2,463
684
903
44
(1,290)
(305)
(81)
(1,006)
373
$ 60,215
$ 62,617
$ 68,682
$ 68,607
$ 72,692
*Annualized
38
($ in thousands)
6/30/14 YTD
Net income
6/30/15 YTD
$ 71,177
$ 71,612
1,281
1,979
Plus: merger related items (tax effected at 35%)
0
14,219
Net income before amortization of intangibles*
$ 72,458
$ 87,810
$6,203,160
$7,796,400
(317,836)
(394,957)
$5,885,324
$7,401,443
1.23%
1.19%
Plus: amortization of intangibles* (tax effected at 35%)
Average assets
Less: average goodwill & other intangibles, net of def. tax liabilities
Average tangible assets
Return on average tangible assets
39
($ in thousands)
6/30/14 YTD
Net income
6/30/15 YTD
$ 71,177
$ 71,612
1,281
1,979
Plus: merger related items (tax effected at 35%)
0
14,219
Net income before amortization of intangibles*
$ 72,458
$ 87,810
Average total shareholders’ equity
$ 765,985
$1,001,344
Less: average goodwill & other intangibles, net of def. tax liabilities
(317,836)
(394,957)
Average tangible equity
$ 448,149
$ 606,387
16.17%
14.48%
Plus: amortization of intangibles* (tax effected at 35%)
Return on average tangible equity
40
($ in thousands)
2011
2012
2013
2014
2Q’15
$ 43,809
$ 49,544
$ 63,925
$ 69,974
$ 71,612
1,566
1,398
1,487
1,248
1,979
Plus: merger related items (tax effected at 35%)
0
2,527
852
851
14,219
Net income before amortization of intangibles*
45,375
53,469
66,264
72,073
87,810
625,061
656,684
733,249
780,423
1,001,344
(280,718)
(281,326)
(318,913)
(317,523)
(394,957)
Average tangible equity
344,343
375,358
414,336
462,900
606,387
Return on average tangible equity
13.18%
14.24%
15.99%
15.57%
14.48%
Net income
Plus: amortization of intangibles* (tax effected at 35%)
Average total shareholders’ equity
Less: average goodwill & other intangibles, net of def.
tax liabilities
41
($ in thousands)
2010
2011
2012
2013
2014
$ 35,611
$ 43,809
$ 49,544
$ 63,925
$ 69,974
1,774
1,566
1,398
1,487
1,248
37,385
45,375
50,942
65,412
71,222
605,742
625,061
656,684
733,249
780,423
(282,389)
(280,718)
(281,326)
(318,913)
(317,523)
Average tangible equity
323,353
344,343
375,358
414,336
462,900
Return on average tangible equity
11.56%
13.18%
13.57%
15.79%
15.39%
Net income
Plus: amortization of intangibles* (tax effected at
35%)
Net income before amortization of intangibles*
Average total shareholders’ equity
Less: average goodwill & other intangibles, net of
def. tax liabilities
42
($ in thousands)
2011
2012
2013
2014
2Q’15
$ 43,809
$ 49,544
$ 63,925
$ 69,974
$ 71,612
1,566
1,398
1,487
1,248
1,979
Plus: merger related items (tax effected at 35%)
0
2,527
852
851
14,219
Net income before amortization of intangibles*
45,375
53,469
66,264
72,073
87,810
Average total assets
5,440,243
5,606,386
6,109,311
6,253,253
7,796,400
Less: average goodwill & other intangibles, net of def.
tax liabilities
(280,718)
(281,326)
(318,913)
(317,523)
(394,957)
Average tangible assets
5,159,525
5,325,060
5,790,398
5,935,730
7,401,443
0.84%
1.00%
1.14%
1.21%
1.19%
Net income
Plus: amortization of intangibles* (tax effected at 35%)
Return on average tangible assets
43
44